A new report from the Tax Foundation tells us what most of us in South Dakota already knew: South Dakota is very business-friendly!

According to the report released three days ago, South Dakota has the #2 best business tax climate, behind our neighbor Wyoming at #1.  Another neighbor, Montana, ranks well at #6.

South Dakota has been ranked at #2 for several years now, thanks largely to our lack of a corporate or individual income tax.  South Dakota property taxes were also ranked high: #12 among the 50 states.

South Dakota suffers from a small population (less than 1 million people in the entire state) and an economy that is heavily agricultural. 

However, more and more businesses have been expanding in South Dakota due to this friendly business climate.  And with more business investment in South Dakota, the situation can only improve.

More business development will mean more people earning better wages, which will translate into more sales tax revenue as those wages are spent.  And with more job opportunities, the state's population may even grow at a greater rate.  

Business is indeed the pack-mule that carries us all to success in America.  But any pack mule can be weighed down with more than it can carry.

Hopefully South Dakota will remain proud of it's distinction of being business-friendly and avoid the tendency of many governments--including our federal government--to hammer the engine of success in our free-market economy.